Fagerhult, a Swedish lighting company, will buy iGuzzini, Italy's leading architectural lighting company, according to media reports.
It is reported that Fagerhult and iGuzzini shareholders signed a letter of intent to acquire 100% of the company's shares.
Fagerhult now has the right to conduct due diligence and aims to sign a stock purchase agreement before Christmas.
The final confirmation of the transaction is subject to the approval of the board of directors of Fagerhult and the approval of the European competition director. The capital of the transaction will be provided by the Fagerhult stock's debt and the new rights issue.
When the deal is completed, the Guzzini family will receive a majority of the Fagerhult consideration and become shareholders in the merged company. Adolfo Guzzini, president of iGuzzini, and Andrea Sasso, chief executive, will also hold senior positions in the Fagerhult senior management team in addition to their respective executive positions in iGuzzini.
Fagerhult said the acquisition of iGuzzini would greatly consolidate its position in the professional lighting market, both geographically and in adding complementary product lines.
It is reported that iGuzzini was founded in 1959, with a high brand awareness, mainly produces and manufactures indoor and outdoor lighting products, headquartered in Italy. It is understood that the company initially considered issuing an IPO this year, but decided to sell directly to another lighting company.
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